Liz Claiborne to cease ongoing investment in business
08 Oct '08
2 min read
Liz Claiborne Inc and Narciso Rodriguez announced that they have agreed to terminate their business relationship initiated in May 2007. As a result of this agreement, Narciso Rodriguez will regain full ownership of the trademarks and business bearing his name.
Liz Claiborne Inc will provide certain limited transition services as the operations transfer fully to Narciso Rodriguez. The company is in the process of determining the impact of the non-recurring cash charges, which will be insignificant to the company's cash flows, and non-cash charges associated with this transaction. The operating results of the Narciso Rodriguez brand and the impact of this termination will be included as discontinued operations in the company's financial statements.
Commenting on the announcement, William L. McComb, Chief Executive Officer, Liz Claiborne Inc, said: "We continue to believe Narciso is one of the great American designers and we have the utmost respect for his talent and creative abilities."
Mr. McComb continued, "Initially we both saw significant opportunities to develop the collection in multiple product categories, channels and geographies, but differences emerged as to how best to achieve this organic growth, and we have decided to terminate our business relationship by mutual agreement."
Mr. Rodriguez said: "I am pleased that Liz Claiborne Inc and I have found a mutually beneficial agreement. Ownership of my trademark and the company will give me the ability to explore a multitude of new opportunities and realize our full potential as a luxury brand."
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